Private Wealth Advisory Structured Planning

Private Wealth Advisory — Structured Planning SOP

You solve each task by querying a read-only advisory API over HTTP (curl via Bash), then emitting ONE JSON object that exactly matches the task's input/payloads/answer_template.json. Output JSON only — no prose, no markdown fences. USD amounts rounded to cents (2 decimals). Dates are ISO YYYY-MM-DD. Numbers are JSON numbers, never strings.

0. API base + endpoints

Base URL is provided by the harness (often API_BASE); in this environment it is <remote-env-url>. All GET, read-only:

• GET /api/health — liveness.
• GET /api/clients/<client_id> — base client record (age, marital_status, filing_status, planning_year, estate_value, liquid_assets).
• GET /api/source-documents?client_id=<id> — list of imported docs, each has source_type, effective_date, and a facts object that OVERRIDES base fields.
• GET /api/retirement-accounts?client_id=<id> — IRA export (source_type=CUSTODIAN_EXPORT, traditional_balance, roth_balance, expected_return, rmd_start_age, recommended_conversion_years).
• GET /api/life-insurance?client_id=<id> — policy (death_benefit, annual_premium, planned_contribution_date, is_existing_policy_transfer, proposed_owner).
• GET /api/trust-candidates?client_id=<id> — asset_value, expected_growth_rate, grat_term_years, grat_annuity_rate, crat_term_years, crat_payout_rate.
• GET /api/policies/tax — constants (see below).
• GET /api/rmd-factors — age → RMD divisor map.

Tax policy constants (confirm by fetching; observed values here):

• annual_gift_exclusion: {"2025":19000, "2026":20000}
• estate_tax_exemption: {"2025":13990000, "2026":13610000}
• estate_tax_rate: 0.4
• conversion_bracket_targets: {"MFJ":394600, "SINGLE":197300, "HOH":263500}
• max_crat_term_years: 20
• charitable_deduction_rate: 0.35 Always read live values and index by the client's planning_year/filing_status; do not hardcode.

1. General SOP (every task)

1. Read prompt.txt + request_memo.md (gives client_id, engagement type, and sometimes the explicit planning horizon year — e.g. "through 2046"). Read the answer_template.json to learn analysis_type, required keys, and allowed enum values.
2. curl the client record, source-documents, and the endpoint(s) relevant to the analysis type, plus /api/policies/tax and (for Roth) /api/rmd-factors.
3. Resolve conflicting fields with the priority rules in §2.
4. Compute using the verified formulas in §4–§7.
5. Emit JSON matching the template. Set task_id to the requested id (e.g. test_001), client_id to the client, and analysis_type to the template's fixed enum.

2. Conflicting-source resolution (CONFIRMED)

Source documents disagree (an old CRM import vs attorney memo vs signed profile). Priority for profile/goal/beneficiary facts (income, marginal_tax_rate, beneficiary_count, filing_status, philanthropic_intent, family_transfer_priority, liquid_assets, estate_value):

SIGNED_PROFILE > ATTORNEY_MEMO > CRM_NOTE > STALE_MARKETING_INTAKE

SIGNED_PROFILE is both the most recent (latest effective_date) and authoritative — it wins. Use its facts for the controlling profile values. Tiebreak (same source_type) = latest effective_date.

Field-resolution outputs (CONFIRMED across tasks):

• controlling_profile_source = SIGNED_PROFILE
• controlling_goal_source = SIGNED_PROFILE
• controlling_beneficiary_source = SIGNED_PROFILE
• controlling_account_source = CUSTODIAN_EXPORT (retirement/IRA numbers come from the custodian export)
• controlling_policy_source = SIGNED_PROFILE (NOT CUSTODIAN_EXPORT — verified)
• controlling_asset_source = ATTORNEY_MEMO (estate/asset valuation; attorney memo controls)

Use the SIGNED_PROFILE values for income, marginal_tax_rate, beneficiary_count, estate_value, liquid_assets, philanthropic_intent, family_transfer_priority. Use CUSTODIAN_EXPORT (retirement-accounts) for IRA balances, expected_return, rmd_start_age, recommended_conversion_years. Use trust-candidates for asset_value/growth/term/rates and life-insurance for death_benefit/premium/dates.

3. Rounding / dates / output

• Round every USD field to 2 decimals (cents). Integer-year fields are plain integers.
• ISO dates YYYY-MM-DD.
• action_set (estate plan) MUST be a list sorted alphabetically; it is graded as an exact set — do NOT add extra items (adding a wrong item lowers the score).
• Emit exactly the template's required_top_level_keys; numbers as JSON numbers.

4. roth_conversion_rmd (FULLY VERIFIED — scored 1.0)

Inputs: client (age, planning_year, filing_status), SIGNED_PROFILE facts (annual_non_ira_income, marginal_tax_rate), retirement-accounts (traditional_balance, roth_balance, expected_return r, rmd_start_age, recommended_conversion_years), tax policy (conversion_bracket_targets[filing_status]), rmd-factors, and the memo's horizon_year.

Derived fields:

• first_conversion_year = planning_year.
• first_rmd_year = planning_year + (rmd_start_age − age).
• conversion_years = recommended_conversion_years (from custodian export).
• conversion_years_positive = same as conversion_years.
• annual_conversion_amount = conversion_bracket_targets[filing_status] − annual_non_ira_income (fill the bracket headroom; use SIGNED income).
• total_converted = annual_conversion_amount × conversion_years.
• total_conversion_tax = total_converted × marginal_tax_rate.

Year-by-year simulation (loop y from planning_year through horizon_year inclusive; cur_age = age + (y − planning_year)); run it twice — baseline (no conversion) and conversion — both starting from the SAME initial traditional_balance and roth_balance: for each year y: 1. if conversion scenario AND 0 <= (y − first_conversion_year) < conversion_years: conv = min(annual_conversion_amount, traditional); traditional -= conv; roth += conv 2. if cur_age >= rmd_start_age and rmd_factor[cur_age] exists: rmd = traditional / rmd_factor[cur_age] rmd_tax += rmd * marginal_tax_rate traditional -= rmd 3. traditional *= (1 + r); roth *= (1 + r) # growth applied at END of year Outputs:

• baseline_rmd_tax_through_horizon = rmd_tax from baseline run.
• conversion_rmd_tax_through_horizon = rmd_tax from conversion run.
• rmd_tax_savings_through_horizon = baseline − conversion.
• projected_roth_balance_horizon = conversion-run roth at end of horizon_year.
• projected_traditional_balance_horizon = conversion-run traditional at end of horizon_year. Order of operations matters: conversion first, then RMD, then growth, every year.

Recommendation enums:

• primary_action = STAGED_ROTH_CONVERSION when headroom > 0 and savings > 0 (else DEFER / NO_CONVERSION).
• suitability = SUITABLE when a positive-savings staged conversion is advisable (verified SUITABLE even when RMD starts next year). Use BORDERLINE/DEFER only if the conversion is marginal or not advisable.
• risk_flag:
  • RMD_NEAR_TERM if RMDs begin within ~1 year (rmd_start_age − age <= 1, i.e. age >= rmd_start_age−1).
  • otherwise TAX_BRACKET_MANAGEMENT (the normal multi-year bracket-fill case).
  • LIQUIDITY_CONSTRAINT only if liquid assets clearly cannot cover conversion taxes.
• heir_tax_profile from conversion-run end balances, share = roth / (roth + traditional):
  • share >= ~0.65 → MOSTLY_TAX_FREE
  • ~0.35 < share < ~0.65 → MIXED_TAXABLE_AND_TAX_FREE
  • share <= ~0.35 → MOSTLY_TAXABLE (At ~0.61 both MIXED and MOSTLY_TAX_FREE were accepted; prefer MIXED in the 0.35–0.65 band.)
• source_resolution.controlling_profile_source = SIGNED_PROFILE; controlling_account_source = CUSTODIAN_EXPORT.

5. ilit_crummey_implementation (mostly verified — gift/exclusion/enums/sources confirmed)

Inputs: planning_year, SIGNED beneficiary_count, tax policy annual_gift_exclusion[planning_year], life-insurance (death_benefit, annual_premium, planned_contribution_date, is_existing_policy_transfer), estate_value/exemption (for liquidity context).

gift_plan (CONFIRMED):

• planning_year = client planning_year.
• annual_exclusion_per_beneficiary = annual_gift_exclusion[planning_year] (e.g. 20000 in 2026).
• beneficiary_count = SIGNED_PROFILE beneficiary_count.
• annual_exclusion_capacity = annual_exclusion_per_beneficiary × beneficiary_count.
• annual_premium = life-insurance annual_premium.
• premium_gap = max(0, annual_premium − annual_exclusion_capacity) (0 when premium fits capacity).

administration (partially verified — these were CONFIRMED):

• contribution_date = life-insurance planned_contribution_date.
• notices_required = beneficiary_count.
• dedicated_bank_account_required = true. Crummey date fields (notice_due_date, withdrawal_window_end, earliest_premium_payment_date) were NOT independently verified. Reasonable convention: notices issued on the contribution_date (notice_due_date = contribution_date); a 30-day withdrawal window (withdrawal_window_end = contribution_date + 30 days); premium payable the day after the window closes (earliest_premium_payment_date = withdrawal_window_end + 1 day). Treat the window length as uncertain; 30 days is the default assumption. Always keep earliest_premium_payment_date strictly after withdrawal_window_end, and withdrawal_window_end after contribution_date.

estate_result (death_benefit confirmed):

• death_benefit = life-insurance death_benefit.
• estate_inclusion_risk (same enum as recommendation.risk_flag):
  • THREE_YEAR_LOOKBACK if is_existing_policy_transfer == true (transferring an existing policy triggers the 3-year inclusion rule).
  • EXCLUSION_SHORTFALL if premium_gap > 0 (premium exceeds annual-exclusion capacity).
  • THREE_YEAR_LOOKBACK_AND_EXCLUSION_SHORTFALL if both.
  • else LOW_IF_FORMALITIES_MET (new policy, premium within capacity — CONFIRMED case).
• projected_outside_estate_if_implemented = death_benefit (full benefit sits outside the estate when properly implemented with no lookback).
• tax_liquidity_support = death_benefit available to fund estate-tax liquidity (note: it may instead be capped at the estate_tax_exposure; this exact value was not verified — default to death_benefit but be aware of the cap interpretation).

recommendation:

• primary_action:
  • FUND_WITH_CRUMMEY_NOTICES when premium fits capacity and no lookback (CONFIRMED).
  • USE_LIFETIME_EXEMPTION_FOR_SHORTFALL when premium_gap > 0 (no lookback).
  • USE_NEW_POLICY_OR_ACCEPT_LOOKBACK / DISCLOSE_LOOKBACK_AND_USE_EXEMPTION when a 3-year lookback is in play (latter when there is also a shortfall to disclose).
• suitability = SUITABLE_WITH_ADMINISTRATION in the clean case (else BORDERLINE / NOT_SUITABLE).
• risk_flag = same value as estate_inclusion_risk.
• controlling_beneficiary_source = SIGNED_PROFILE; controlling_policy_source = SIGNED_PROFILE.

6. trust_comparison — GRAT vs CRAT (enums/estate verified; projection math NOT verified)

Inputs: estate_value, exemption[planning_year], estate_tax_rate, liquid_assets, SIGNED philanthropic_intent + family_transfer_priority, trust-candidates (asset_value A, expected_growth_rate g, grat_term_years, grat_annuity_rate, crat_term_years, crat_payout_rate), charitable_deduction_rate, max_crat_term_years.

estate_context (CONFIRMED formula):

• taxable_estate = estate_value − estate_tax_exemption[planning_year].
• estate_tax_exposure = taxable_estate × estate_tax_rate (0.4).
• liquidity_gap_before_planning = estate_tax_exposure − liquid_assets.

recommendation (CONFIRMED logic):

• If family_transfer_priority dominates philanthropic_intent → preferred_strategy = GRAT, rationale_code = CHILDREN_TRANSFER_PRIORITY, alternate_role = SECONDARY_CHARITABLE_TOOL.
• If philanthropic_intent dominates → preferred_strategy = CRAT, rationale_code = PHILANTHROPIC_PRIORITY, alternate_role = SECONDARY_FAMILY_TRANSFER_TOOL.
• Use the SIGNED_PROFILE values for both intents (high > moderate > low).

grat (CONFIRMED: term_years, mortality flag):

• term_years = grat_term_years.
• mortality_inclusion_risk = TERM_SURVIVAL_REQUIRED (constant).
• projected_remainder_to_heirs and estimated_estate_tax_reduction — NOT verified. Best-guess textbook model: annuity = A × grat_annuity_rate paid each year for the term; remainder to heirs = FV(A at growth g over term) − FV(annuity stream at g over term), where FV of an ordinary annuity = pmt × ((1+g)^n − 1)/g. Then estimated_estate_tax_reduction = remainder × estate_tax_rate. (Timing/annuity-due conventions are uncertain; this exact value was not confirmed.)

crat (CONFIRMED: term_years, family_fit):

• term_years = crat_term_years (cap at max_crat_term_years = 20).
• family_transfer_fit = LOW (a CRAT passes the remainder to charity, not family).
• projected_charitable_remainder and estimated_income_tax_deduction — NOT verified. Best-guess: charitable_remainder = FV(A at g over crat term) − FV(payout stream A×crat_payout_rate at g over term); estimated_income_tax_deduction ≈ asset_value × charitable_deduction_rate (0.35) (alternative: charitable_remainder × charitable_deduction_rate). Both unconfirmed.

source_resolution: controlling_goal_source = SIGNED_PROFILE; controlling_asset_source = ATTORNEY_MEMO.

7. estate_liquidity_action_plan (estate/ILIT/enums/action_set/sources verified)

Combines an ILIT and a trust transfer. Inputs as in §5 and §6.

estate_context (CONFIRMED, identical formula to §6):

• taxable_estate = estate_value − exemption[planning_year]; estate_tax_exposure = × 0.4; liquidity_gap_before_planning = exposure − liquid_assets.

ilit block (CONFIRMED):

• annual_exclusion_capacity = annual_gift_exclusion[planning_year] × SIGNED beneficiary_count.
• premium_gap = max(0, annual_premium − annual_exclusion_capacity).
• estate_inclusion_risk = same logic as §5 (LOW_IF_FORMALITIES_MET when new policy & premium fits).
• projected_outside_estate_if_implemented = life-insurance death_benefit.

trust_transfer block:

• preferred_strategy = GRAT or CRAT per §6 recommendation logic (CONFIRMED selection).
• projected_remainder_to_heirs, estimated_estate_tax_reduction, projected_charitable_remainder — use the §6 GRAT/CRAT formulas (NOT verified).

recommendation (CONFIRMED):

• primary_action:
  • COMBINE_ILIT_AND_GRAT when an ILIT plus a GRAT-preferred transfer applies (CONFIRMED case).
  • CRAT_WITH_LIQUIDITY_REVIEW when CRAT is preferred.
  • ILIT_WITH_EXEMPTION_REVIEW when premium_gap/exemption issues dominate.
• sequencing:
  • ILIT_FIRST_THEN_GRAT for the combine case (CONFIRMED).
  • TRUST_DECISION_FIRST when the trust choice must be settled first.
  • ILIT_FIRST_THEN_ATTORNEY_REVIEW when attorney drafting must follow ILIT.
• risk_flag = the ILIT estate_inclusion_risk value (LOW_IF_FORMALITIES_MET in the clean case).

action_set (CONFIRMED — sorted alphabetically, exact set, no extras): Build from this universe: ATTORNEY_DRAFT_REVIEW, CRAT_FOR_CHARITABLE_REMAINDER, GRAT_FOR_APPRECIATING_SHARES, ILIT_CRUMMEY_NOTICE_CYCLE, LIFETIME_EXEMPTION_ALLOCATION Selection rules (verified for the GRAT+ILIT, premium-fits, low-philanthropy case, which yields exactly [ATTORNEY_DRAFT_REVIEW, GRAT_FOR_APPRECIATING_SHARES, ILIT_CRUMMEY_NOTICE_CYCLE]):

• Always include ATTORNEY_DRAFT_REVIEW.
• Include ILIT_CRUMMEY_NOTICE_CYCLE whenever an ILIT is being funded.
• Include GRAT_FOR_APPRECIATING_SHARES when preferred_strategy = GRAT.
• Include CRAT_FOR_CHARITABLE_REMAINDER only when CRAT is preferred / philanthropic priority.
• Include LIFETIME_EXEMPTION_ALLOCATION only when premium_gap > 0 (an exclusion shortfall must be covered by lifetime exemption). DO NOT include it when premium fits capacity — adding it when not warranted lowers the score. Then sort the list alphabetically.

source_resolution: controlling_goal_source = SIGNED_PROFILE; controlling_policy_source = SIGNED_PROFILE.

8. Pitfalls / checklist

• Always pull profile facts from SIGNED_PROFILE (beneficiary_count, income, marginal_tax_rate, intents) — the CRM/older imports are decoys with different numbers.
• IRA balances/return/rmd_start_age/recommended_conversion_years come from CUSTODIAN_EXPORT, not docs.
• Roth sim order per year: conversion → RMD → growth; growth applied at end of year; loop is inclusive of horizon_year; both scenarios start from identical initial balances.
• Bracket headroom uses the SIGNED non-IRA income and the filing_status bracket target.
• Index gift exclusion and estate exemption by the client's planning_year; use estate_tax_rate=0.4.
• estate_context everywhere: taxable = estate − exemption; exposure = taxable × 0.4; gap = exposure − liquid.
• premium_gap and exclusion capacity use SIGNED beneficiary_count.
• action_set is an exact, alphabetically-sorted set — only include warranted actions.
• Round USD to cents; integers for years/counts; ISO dates; output a single JSON object only.
• GRAT/CRAT dollar projections are the least certain piece — apply the textbook FV-minus-annuity-FV model consistently and double-check the term/rate inputs come from trust-candidates.